9 Marketing Strategies for Car Dealerships

December 17, 2024by Amanda Ivers0

The automotive industry is a wildly competitive market.

Are you spinning your wheels trying to come up with a marketing strategy  that helps you stay ahead of the curve?

The key is to embrace innovative approaches to attracting and retaining customers.

Here are some key marketing strategies that will rev you up.

1. Website & SEO

Did you know 95% of car shoppers rely on online resources to gather information, bypassing dealerships as their starting point?

Ensure your website is mobile-friendly, easy to navigate, and provides valuable information about your inventory, services, and financing options. A well-optimized website is crucial for attracting potential customers.

Search engine optimization (SEO) plays a vital role in improving a dealership’s online visibility. Through relevant keywords and high-quality backlinks, your dealership can significantly boost your search engine rankings. Increased visibility leads to higher organic traffic, attracting more potential car buyers to your website.

2. Pay-Per-Click (PPC) Advertising

PPC is a powerful way for your car dealership to connect with potential customers who are searching online. You can display targeted ads at the top of the search engine results pages to promote your inventory, promotions, and services.

Another benefit of PPC advertising is that it allows for precise targeting, enabling you to reach specific demographics, geographic locations, and even individuals with particular car buying interests – helping you reach qualified leads to drive revenue.

3. Customer Reviews

say online reviews had an impact on their buying decisions.

As a result, consumer reviews significantly influence your dealership’s reputation and success.

Customer reviews (often posted on platforms like Google, Yelp, or Dealer Rater) offer valuable insights into the customer experience with your dealership. They encompass various aspects – such as sales interactions, service quality, pricing transparency, and overall satisfaction.

Prioritize these testimonials and actively encourage reviews by offering a free service or raffle prize in exchange. Make the review process easy by sending a link via text or email.

You must also address negative reviews professionally and take steps to resolve any issues.

4. Social Media Marketing

If you’re not on social media, you’re missing out on a valuable opportunity to engage with your target audience. That’s because 71% of buyers use social media to support their car buying process.

Social media marketing has become a powerful tool for auto dealerships to connect with potential customers and drive sales.

Platforms like Facebook, Instagram, YouTube and TikTok allow you to showcase your inventory through visually appealing posts and videos highlight features, and offer virtual tours.

For example, when looking for my new car, I watched tons of video content that walked me through the exterior and interior of different models – before ever looking at cars in person. And I’m not the only one. The watch time of vehicle test drives on YouTube has increased by more than 65% in the past two years.

You should also include customer engaging content in your social strategy. Posting car reviews, maintenance tips, and behind-the-scenes glimpses into your dealership are a great way to show your value and stand out amongst competitors. Share experiences and humanize your brand. For example, post videos of staff members – the face of your business. Share pictures showcasing your support for local charities.

Utilizing targeted advertising campaigns on social media can enable your dealership to reach specific demographics and better understand your customer’s interests.

5. Email Marketing

Email marketing is an effective tool for nurturing leads, driving sales, and building customer loyalty. Collect email addresses from website visitors and potential customers to send targeted messages about new inventory, special offers, and service reminders.

Personalized emails with relevant content can significantly increase open and click-through rates, resulting in higher engagement and conversions.

Email is a powerful channel because it allows you to segment your audience based on a variety of criteria like vehicle preference or purchase history. This allows you to deliver tailored messages that resonate and drive actionable results.

6. Print, Radio & TV Advertising

While digital advertising has exploded in recent years, traditional advertising is still a worthy investment for car dealerships. In fact, many dealerships use print advertising in local newspapers and magazines to reach a wider audience and utilize radio and TV advertising to create brand awareness and generate leads.

Print advertising allows for detailed information and high-quality visuals, showcasing specific car models and sharing enticing promotions.

Radio commercials, on the other hand, offer a more personal connection, using sound effects and engaging scripts to capture listeners’ attention.

Television and CTV ads provide the greatest visual impact, using dynamic footage and music to create memorable brand experiences.

7. Direct Mail

Direct mail has a high return on investment at 29%.

This classic method of marketing is still a crucial part of an effective multi-channel marketing campaign.

A powerful tool for auto dealerships, it offers a tangible way to connect with potential customers. Sending personalized mailers showcasing the latest models, exclusive offers, or service reminders while breaking through the digital clutter.

Mail pieces allow for creative design and messaging, giving you the option to highly personalize your message to your recipients while showcasing your top vehicle features or seasonal promotions.

8. Data

Auto dealerships are increasingly leveraging data to enhance their operations and customer experiences.

You can analyze customer data to tailor marketing campaigns, personalize interactions, and improve sales effectiveness.

Some target audiences to include are new movers and in-market shoppers:

New Movers

Within the first 6 months of relocating, 54% of new movers are in market for auto repair services and 49% for auto parts.

It’s important to get in front of new movers with timely and personalized outreach. These potential customers at a crucial moment in their lives.

In-Market Shoppers

Use real-time data to find those who are actively searching for new vehicles or services you offer. Do this by tracking online activity, such as website visits, search queries, and social media interactions.

In-market data also helps dealerships understand market trends, competitor activity, and consumer sentiments. This can ultimately allow you to make informed decisions about pricing, promotions, and sales strategies.

9. In-Store Marketing

Create a welcoming and engaging showroom experience for customers.

Strategically placed signage and displays can highlight key features and promotions. Create a welcoming atmosphere by having complimentary refreshments or amenities available.

Offer test drives and vehicle demonstrations to highlight the features and benefits of your cars. Enhancing your dealership with interactive elements like virtual reality test drives or augmented reality vehicle configurations can captivate and inform potential buyers.

You are only as good as your sales team! Train them to provide excellent customer service and build strong relationships. Teach them persuasive sales techniques, product knowledge, and how to handle customer questions and concerns.

 

Conclusion

Car dealerships must implement a multi-channel marketing strategy to drive new business, nurture old leads and customers, and increase revenue.

By leveraging a blend of traditional and digital marketing tactics, dealerships can effectively reach their target audience, build brand awareness, and drive sales.

For more information and ideas for your automotive dealerships’ direct mail and digital campaigns, contact Welcome Wagon! Founded in 1928 to welcome new movers to their community, Welcome Wagon is committed to connecting with new homeowners through their mailboxes and online.

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